Hong Kong SAR Limited vs pcl

Limited is a legal entity in the Hong Kong Special Administrative Region, with the full name Private Company Limited by Shares. It belongs to the form of a combined ownership, where the shareholders own the company, and a sole shareholder who is an individual may also be its sole director. Limited is a type of limited liability company, and the shareholders' liability is limited to any amount unpaid on the shares they hold. This type of company does not publicly participate in the market and does not issue shares to the public.

According to Hong Kong law, a Limited company must have at least one shareholder and at least one director. Unlike companies in other countries/regions, a Limited company may not be required to appoint a legal representative and may not need to have a local person serve as a director. However, a Limited company must appoint a company secretary.

There is no minimum capital and shares have no par value; issuing 10,000 shares is only common practice. A transfer of shares attracts stamp duty of 0.1% on each of the buyer's and the seller's contract notes (0.2% in total), with no threshold. Limited companies do not require capital verification and have no capital verification requirements. Overall, Limited companies are a flexible form of company suitable for small or family businesses.